State RegulationsFL specificDifficulty 1/5
When a Florida agent recommends an annuity to a consumer, what standard must the recommendation meet under Florida law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 627, Florida Statutes, governing annuity transactions, an agent must have reasonable grounds to believe that a recommended annuity is suitable and consistent with the consumer's best interest given the facts known to the agent. Recommending a product to chase compensation, or without regard to the consumer's circumstances, violates this obligation and exposes the agent to DFS discipline.
Why the other options are wrong
- A) Commission-driven recommendations directly contradict the best-interest obligation owed to the consumer.
- C) The issuer being authorized in Florida does not make any particular annuity suitable; the consumer's circumstances control.
- D) The suitability obligation applies to every annuity recommendation regardless of the consumer's age.
Memory hook
Best interest first: the annuity must fit, not just pay.